Acquisition Proposal

Acquisition Proposal
Acquisition Proposal

Early in the acquisition process, the acquiring company will often write and submit an acquisition proposal to the target company. This proposal is a formal offer to purchase the target company. The proposal identify the companies involved, such as the parent (acquirer) and target, a description of the transaction, as well as attachments of related business documents. This document is one of the important factors in moving the deal forward from simply initiating a casual pass.

There are many Acquisition Proposal examples available on the internet. An example used in a public company merger and acquisition is given below. For a template for use in a more general context, readers can view the Powerpoint Presentation Slides from Slideshare detailing how to construct you own version tailored to your own specific needs and requirements.

Acquisition Proposal Example

On March 3, 2020, Forescout Technologies (FSCT) filed a PREM14A in relation to the proposed merger with Ferrari Group Holdings. The document contained 115 references to “acquisition proposal(s)“. The first quote is taken from section 1.1 “Certain Definitions”
 “Acquisition Proposal” means any offer or proposal (other than an offer or proposal by Parent or Merger Sub) relating to an Acquisition Transaction.
The document also specifies how such a proposal can be accepted in relation to the go-shop and no-shop periods
The merger agreement permits Forescout and its representatives, at the direction of the Forescout Board, from the date of the merger agreement until 12:01 a.m. on March 8, 2020 (which we refer to as the “no-shop period start date”) to (1) initiate, solicit, propose, induce or encourage any alternative acquisition proposals from third parties; (2) provide nonpublic information to third parties; and (3) participate in discussions and negotiations with third parties regarding alternative acquisition proposals.
It is important traders understand how different situation use terms such as these interchangeably and how in other situations their usage is more specific. Many time documents such as these will have a separate section defining key terms.
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